Chinese web portal Sina Corp has reported that its Q4 profits fell 15 percent due to a drop in revenues for mobile services and higher expenses, reports AP. Mobile value added services were $19.3 million in the fourth quarter, a fall of 11 percent from Q3 and 22 percent year-on-year. This was due to the changes in operator policies in July last year intended to stamp out predatory subscription practices. The biggest fall was in SMS revenues, which fell 41 percent to $10.8 million. The company expects revenues to decline further, but has no plans to leave the industry.
Sina is in a better position than other mobile content and services vendors because it has other businesses to offset the losses — its online advertising revenues came in at $35.7 million, a 43 percent increase year-on-year and a 9 percent increase from Q3. Overall, net revenues for the group were $56.4 million, up from $52.0 million in 2005 and $56.1 million for Q3.
For the full year 2006 net revenues increased by 10 percent to $212.9 million. (earnings report)
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